An economic story for the ages

 

From Drudge, with these as the sidebars:

 

One can support the Democrats and oppose Trump only if one believes in voting for a living and not the desire to live freely. It is not tax cuts as such that matter, but that the onus for growth is now being placed on the private sector. Over time, the proportion of the economy directed by government will recede along with the regulations that have slowed and in many places stopped productive activity.

The pressures it will place on others will be through the power of example rather than that the US will grow to anyone else’s detriment so others will be forced to match these policies or see their economies shrivel. Everyone will grow, but some more rapidly than others. This is how it’s done. No matter how much anyone else produces, whatever anyone else add themselves will make their own economy more prosperous.

That is, Keynesian economics is dead, at least for now.

Less tax revenue in the hands of government; more money in the hands of business

If you have been in doubt whether PDT is a political genius, doubt no more: Sweeping tax reform PASSES the Senate: GOP scores major victory in 11th-hour vote for $1.5 TRILLION bill after Democrats said they had no time to read the 500-page, ‘scribbled’ small print.

Here’s the big print version: less tax revenue in the hands of government; more money remaining in the hands of business with which to invest and employ. The rest is detail. Here are the subheads on the article:

  • The Senate approved a sweeping tax overhaul in the early hours of Saturday
  • Vote passed by 51-49 as Democrats voted in bloc and one Republican opposed
  • Vice President Mike Pence announced passage at 1.51am to a round of applause
  • Final alterations to the bill were still being made late in the evening on Friday 
  • Democrats claimed they didn’t have time to read bill and tried to adjourn vote
  • Victory moves Donald Trump one step closer to slashing taxes for businesses
  • Democrats say tax overhaul will add $1.5 trillion to national debt over 10 years
  • Republicans insisted changes will be revenue-neutral as tax cuts spur growth

To listen to Democrats complain about the addition to national debt is particularly irritating since that has perennially been the last thing on their minds when adding to America’s massive debt. So let me just say for the record why this will lead to a massive improvement in the American economy.

  • There will be less public spending which invariably slows growth.
  • There will be more spending by private sector firms which adds to growth.
  • Public revenues will rise, all other things being equal, as tax rates fall.
  • Whether Congress will then use the additional revenue to increase spending or to lower taxes is the question, with the likelihood (alas) towards more spending, but at least further spending cuts will become possible.

Meanwhile PDT has his first major legislative win with others sure to follow, once Roy Moore is elected and the Republicans begin to think about the rage within their own constituencies if the Republicans fail to deliver what they had been promised.

Not that anyone will notice

It still has to make it through the Senate, but this is progress: House Republicans pass tax reform bill.

House Republicans on Thursday passed a monumental bill to cut taxes on businesses and individuals, the biggest step yet in the GOP’s once-in-a-generation effort to overhaul the American tax system. . . .

The House plan would permanently chop the corporate tax rate to 20 percent from 35 percent and make other tweaks aiming to make businesses more competitive. It would reduce individual tax brackets to four from seven and make changes to several tax breaks. Among them, the bill would limit state and local deductions and the mortgage interest deduction, eliminate the personal exemption and nearly double the standard deduction.

On other matters of more interest to the media, if you were wondering about evidence and sexual harassment and what it looks like, here is an actual example. It’s sort of even more obvious than the DNA on Monica’s dress, and the woman was herself outraged: Senator Al Franken Kissed and Groped Me Without My Consent, And There’s Nothing Funny About It.

It doesn’t much matter since the media is not trying to remove Democrats from the Senate, only trying to prevent Trump-supporting Republicans from being elected, the same approach being taken by Congressional Republicans as well. There are many reasons that the Republicans got around to finally doing something on the Trump agenda, and their clear willingness to throw away a Republican Senate seat by not defending the person who actually won the primary in Alabama is a not insignificant part of it. Really, what are they good for?

Meanwhile, the American economy is going forward, growth is accelerating and employment picking up. But since these are natural phenomena that have no relationship to who is president nor what he does, we can concentrate on what really matters, such as the sexual practices of actors and politicians in Hollywood and DC.